Tuesday 31st January 2017
|Text too small?|
Better Health Co has sold an 80 percent stake to an Asian private equity fund to help the Lower Hutt-based supplements maker break into export markets.
The Overseas Investment Office approved the deal in December, where ORA New Zealand, a private equity fund ultimately controlled by pan-Asian alternative asset fund manager China Diamond Holdings, acquired the stake in "sensitive land" and "significant business assets". The consideration paid was withheld.
The Better Health Co manufactures and distributes natural health products under the GO Healthy brand, sold exclusively through pharmacies and health stores.
The OIO summary decision, released today, says the vendors had "achieved a number of its initial strategic objectives and is the market leader in its New Zealand distribution channel" and wanted to use that brand to enter international markets.
"The vendors wished to include in the business a strategic partner who could assist with speed of entry into international markets. A partner was sought that has the resources, capability and willingness to accelerate the growth of GO Healthy," the notice said. "The applicant intends to act as a catalyst for expansion of the Go Healthy business and unlock value for all stakeholders by providing the needed assistance and resources to the existing management team in its efforts to capture these new opportunities."
The deal is the latest where Asian investors have shown an interest in Australasian food supplements businesses, with Vitaco Health Group taken over by a Chinese-led consortium last year after a brief period on the ASX.
No comments yet
UPDATE: CBL shares drop 11% after earnings fall short of some expectations
MARKET CLOSE: NZ shares fall, Warehouse and Mercury NZ drop while Air NZ gains
NZ dollar gains 0.5% against greenback on week, treading water into weekend
More booze on New Zealand shelves in 2016 as craft beer in demand
Murray Goulburn's milk collection sinks 21% in first half, outpacing Fonterra
CBL annual profit falls 14% as expansion costs weigh
Government releases terms of reference on fuel price study
NZ lamb wool price picks up as fewer wool bales offered at auction
NZME reports little changed FY pro forma net profit despite challenging markets
Vista pays bigger-than-expected maiden dividend as China deal bolsters profit